Which type of companies typically offer policies owned by policyholders rather than shareholders?

Mutual companies are structured to be owned by the policyholders themselves, as opposed to shareholders. In this model, each policyholder has a vested interest in the company and may benefit from dividends, which are distributed based on the company's profits. This alignment of interests allows policyholders to have a say in the company's operations and decisions, typically through voting rights.

In contrast, stock companies are owned by shareholders who invest in the company and may prioritize their financial returns. Fraternal organizations, while also member-owned, typically offer benefits primarily to their members in specific groups or affiliations, and their main focus is on social, educational, or charitable activities. Commercial insurers may vary in structure but often focus on profit-making for shareholders. Therefore, mutual companies stand out as the type that directly represents the interests of policyholders, making them the correct choice in this context.